Rapid growth in the Vietnamese market is starting to spread to secondary
airports with new domestic and international routes. The new routes mark an
important new phase in the development of the Vietnamese market which will
accelerate as the country’s carriers pursue rapid expansion.

Vietnam's fledgling airline industry is poised for a boom as local
competition heats up with fleet expansions, new routes and planned share offers
that are set to make it one of the world's three fastest growing markets.

VietJet Air, Vietnam’s first private airline, announced Monday it will soon
up its roundtrip flights between Ho Chi Minh City and Hue to two per day, in
time for the reopening of Hue’s international airport.

Minister of Transport -- Dinh La Thang, has decided that Vietnam Airlines
would have to complete the equitization process within 2013, which means that
the investors would have the chance to possess the shares of the national flag
air carrier this year.

If this happens, this would be the second private airline which has to stop
providing commercial flights in Vietnam. The first one was Indochina Airlines
which had to stop flying just after one year of taking off.

Air Astana, Kazakhstan’s national flag carrier, on January 2 officially
launched a direct route linking Almaty, the country’s largest city, and HCM
City in Vietnam, with two flights a week, every Wednesday and Friday.

HCMC – A charter flight operated by Orient Air on Wednesday brought over 370
tourists from Moscow to Khanh Hoa Province, and there will be a charter flight
on this route every ten days towards next year-end.

An agreement on amendment to the Vietnam – US Bilateral Air Transport
Agreement has been signed. However, the Vietnamese national flag air carrier
has not made any statements about the opening of the direct air routes.

DANANG – The central coast city of Danang now is arranging to open new air
routes linking the city with China’s Shanghai and Wuhan, Taiwan’s Taipei, Laos’
Vientiane and Russia’s Irkutsk, Novosibirsk and Krasnoyarsk.